Popular Vehicles & Services, operating within the Automobiles sector, currently holds a Mojo Score of 44.0 with a Market Cap Grade of 4. The recent adjustment in its evaluation was triggered on 19 Nov 2025, following a change in its technical grade. The stock price closed at ₹143.40, down 0.80% from the previous close of ₹144.55, with a 52-week trading range between ₹87.28 and ₹186.55. This price movement is set against a backdrop of underperformance relative to the Sensex, with the stock generating a negative return of -9.27% over the last year, while the Sensex recorded a positive 9.48% return over the same period.
Examining the four key parameters that influenced this evaluation adjustment provides a comprehensive understanding of the company’s current standing.
Quality Assessment
The quality parameter reflects the company’s operational and financial robustness. Popular Vehicles & Services has exhibited flat financial performance in the second quarter of FY25-26, with operating profits showing a compound annual growth rate (CAGR) of -36.10% over the past five years. This negative trend in operating profits signals challenges in sustaining growth momentum. Additionally, the company’s ability to service debt is constrained, as indicated by a high Debt to EBITDA ratio of 7.43 times. The reported losses have also resulted in a negative return on equity (ROE), further underscoring concerns regarding profitability and capital efficiency.
Valuation Metrics
From a valuation perspective, Popular Vehicles & Services presents an interesting profile. The company’s return on capital employed (ROCE) stands at 1.9%, coupled with an enterprise value to capital employed ratio of 1.2. These figures suggest that the stock is trading at a discount relative to its peers’ historical valuations. Despite the subdued financial performance, this valuation positioning may offer some appeal to investors seeking value opportunities within the automobile sector. However, it is important to note that the stock’s profits have declined by 114% over the past year, which tempers the attractiveness of its valuation.
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Financial Trend Analysis
The financial trend for Popular Vehicles & Services reveals a pattern of consistent underperformance against benchmark indices. Over the last three years, the stock has lagged behind the BSE500 index in each annual period. The one-year return of -9.27% contrasts sharply with the Sensex’s positive 9.48% return, highlighting the stock’s relative weakness. Furthermore, the company’s interest expense reached ₹25.67 crores in the recent quarter, marking a peak that adds pressure on net profitability. These factors collectively indicate a challenging financial environment for the company, with limited signs of recovery in the near term.
Technical Indicators
The adjustment in evaluation was primarily influenced by changes in technical indicators. The technical trend has shifted from bullish to mildly bullish, reflecting a more cautious market sentiment. Weekly MACD remains bullish, while monthly MACD does not signal a clear trend. The Relative Strength Index (RSI) shows no definitive signal on both weekly and monthly charts. Bollinger Bands present a mixed picture, with a mildly bullish stance on the weekly timeframe but bearish on the monthly. Daily moving averages suggest a mildly bullish trend, whereas the KST indicator is bullish weekly but lacks a monthly signal. Dow Theory analysis indicates no clear trend weekly but mildly bullish monthly, and On-Balance Volume (OBV) shows no trend weekly but bullish monthly. This complex technical landscape suggests that while some short-term momentum exists, longer-term technical signals remain uncertain.
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Additional Considerations
Institutional investors hold a significant stake in Popular Vehicles & Services, with 21.15% ownership. This level of institutional interest often reflects a more thorough fundamental analysis and confidence in the company’s prospects or value proposition. However, the stock’s recent returns and financial metrics suggest caution. The company’s 52-week high of ₹186.55 and low of ₹87.28 illustrate considerable price volatility, which may affect investor sentiment and trading behaviour.
In summary, the revision in Popular Vehicles & Services’ evaluation encapsulates a complex interplay of factors. The company’s quality metrics reveal operational and profitability challenges, while valuation ratios indicate a discounted price relative to peers. Financial trends highlight persistent underperformance against benchmarks, and technical indicators present a mixed outlook with a shift towards a more cautious stance. Investors analysing this stock should weigh these multifaceted elements carefully within the context of their investment objectives and risk tolerance.
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